Is Victory NASDAQ-100 Index (USNQX) a Strong Mutual Fund Pick Right Now?

If you've been stuck searching for Index funds, consider Victory NASDAQ-100 Index (USNQX) as a possibility. The fund does not have a Zacks Mutual Fund Rank, though we have been able to explore other metrics like performance, volatility, and cost.History of Fund/ManagerVictory is based in Columbus, OH, and is the manager of USNQX. Since Victory NASDAQ-100 Index made its debut in October of 2000, USNQX has garnered more than $5.98 billion in assets. Mannik Dhillon is the fund's current manager and has held that role since July of 2019.PerformanceInvestors naturally seek funds with strong performance. USNQX has a 5-year annualized total return of 17.86% and it sits in the top third among its category peers. Investors who prefer analyzing shorter time frames should look at its 3-year annualized total return of 25.89%, which places it in the top third during this time-frame.It is important to note that the product's returns may not reflect all its expenses. Any fees not reflected would lower the returns. Total returns do not reflect the fund's [%] sale charge. If sales charges were included, total returns would have been lower.When looking at a fund's performance, it is also important to note the standard deviation of the returns. The lower the standard deviation, the less volatility the fund experiences. USNQX's standard deviation over the past three years is 19.76% compared to the category average of 15.07%. The fund's standard deviation over the past 5 years is 20.62% compared to the category average of 14.72%. This makes the fund more volatile than its peers over the past half-decade.Risk FactorsThe fund has a 5-year beta of 1.17, so investors should note that it is hypothetically more volatile than the market at large. Alpha is an additional metric to take into consideration, since it represents a portfolio's performance on a risk-adjusted basis relative to a benchmark, which in this case, is the S&P 500. Over the past 5 years, the fund has a negative alpha of -0.51. This means that managers in this portfolio find it difficult to pick securities that generate better-than-benchmark returns.HoldingsExamining the equity holdings of a mutual fund is also a valuable exercise. This can show us how the manager is applying their stated methodology, as well as if there are any inherent biases in their approach. For this particular fund, the focus is primarily on equities that are traded in the United States.The mutual fund currently has 81.26% of its holdings in stocks, which have an average market capitalization of $569.37 billion. The fund has the heaviest exposure to the following market sectors: Technology Retail Trade Turnover is 44%, which means, on average, the fund makes fewer trades than its comparable peers.ExpensesCosts are increasingly important for mutual fund investing, and particularly as competition heats up in this market. And all things being equal, a lower cost product will outperform its otherwise identical counterpart, so taking a closer look at these metrics is key for investors. In terms of fees, USNQX is a no load fund. It has an expense ratio of 0.42% compared to the category average of 0.94%. From a cost perspective, USNQX is actually cheaper than its peers.Investors should also note that the minimum initial investment for the product is $3,000 and that each subsequent investment needs to be at $50Fees charged by investment advisors have not been taken into considiration. Returns would be less if those were included.Bottom LineThis could just be the start of your research on USNQXin the Index category. Consider going to www.zacks.com/funds/mutual-funds for additional information about this fund, and all the others that we rank as well for additional information. If you are more of a stock investor, make sure to also check out our Zacks Rank, and our full suite of tools we have available for novice and professional investors alike.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Get Your Free (USNQX): Fund Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks